Semtech

SMTC Q4 2025 Earnings

Reported Mar 13, 2025 at 4:13 PM ET · SEC Source

Q4 25 EPS

$0.40

Q4 25 Revenue

$251.0M

vs S&P Since Q4 25

+166.1%

BEATING MARKET

SMTC +194.2% vs S&P +28.0%

Full Year 2025 Results

FY 25 EPS

$0.88

FY 25 Revenue

$909.3M

Market Reaction

Did SMTC Beat Earnings? Q4 2025 Results

Semtech closed out fiscal year 2025 on a note of genuine recovery, posting Q4 revenue of $251.00 million, up 6% sequentially and well ahead of the $192.90 million reported in the year-ago quarter, while non-GAAP diluted EPS came in at $0.40. The most… Read more Semtech closed out fiscal year 2025 on a note of genuine recovery, posting Q4 revenue of $251.00 million, up 6% sequentially and well ahead of the $192.90 million reported in the year-ago quarter, while non-GAAP diluted EPS came in at $0.40. The most compelling part of the story was the balance sheet transformation: total long-term debt fell from $1.37 billion to $505.90 million, a 68% reduction in net debt year-over-year that CFO Mark Lin flagged as a defining achievement of the fiscal year. That deleveraging, though it came at the cost of a $144.70 million debt extinguishment loss during FY25, helped stockholders' equity swing from a deficit of $307.40 million to a positive $542.40 million. GAAP net income reached $39.10 million, a sharp reversal from the $642.40 million loss in Q4 FY24, which had been burdened by massive goodwill and intangible impairments. Looking ahead, Semtech guided Q1 FY26 revenue of $250.00 million and non-GAAP diluted EPS of $0.37, with management focused on portfolio simplification, strategic R&D investment, and continued margin expansion.

Key Takeaways

  • Sequential improvement in net sales, gross margin, operating margin, and EPS each quarter of FY25
  • Significant debt reduction with net debt decreasing 68% year-over-year
  • GAAP gross margin expansion to 52.0% in Q4, up from negative 0.2% in Q4 FY24
  • Non-GAAP adjusted EBITDA margin expanded to 23.0% in Q4 from 12.5% in Q4 FY24
  • Free cash flow turned positive at $30.9 million in Q4 vs $12.2 million in Q4 FY24
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SMTC YoY Financials

Q4 2025 vs Q4 2024, source: SEC Filings

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SMTC Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 26 Q4 26

“Fiscal year 2025 represented a year of positive inflection on many fronts, with sequential improvement for each quarter reported in net sales, gross margin, operating margin and earnings per share.”

— Hong Hou, Q4 2025 Earnings Press Release